Investor confidence in Germany has fallen for a third consecutive month as growth prospects worsen, fueling fears of a recession in the EU’s largest economy, Bloomberg reported on Tuesday. The economic sentiment index measured by the ZEW economic research institute dropped to -10.7 in May from 4.1 in April, representing the first sub-zero reading this year. An index of current conditions also deteriorated, the outlet said. The data comes amid a deeper-than-expected production slump across most industries in Germany. New orders for manufacturing companies dropped 10.7 % month-on-month in March, the sharpest decline since April 2020. “The financial market experts anticipate a worsening of the already unfavorable economic situation in the next six months,” ZEW President Achim Wambach said in a statement. “As a result, the German economy could slip into a recession, albeit a mild one,” he added. Economists are predicting that German industry will remain at a stand-still instead of the…
Germany could slip into recession – study
